Finance (No. 4) Bill

Debate between David Ward and Rachel Reeves

Monday 16th April 2012 Commons Chamber

[Rachel Reeves]

As the Chancellor once said, we are all in it together, and if we have a deficit to reduce it is right that those with the broadest shoulders bear a little more of the burden. That was why the former Chancellor increased the top rate of tax to 50p. This Government have reduced it and are instead asking millions of ordinary families and pensioners to pay more so that millionaires can pay less. That is their priority; the Opposition’s priorities are very different.

[Mr David Ward (Bradford East) (LD)]

Is it not true, though, that the Labour Government were running a deficit before the recession? Why could the tax rate not have been raised then, to contribute to reducing it?

[Rachel Reeves]

The hon. Gentleman was not in the House earlier when it was mentioned that between 1997 and 2007, the debt-to-GDP ratio fell from 42.5% to 36%. The debt burden fell in the first 10 years of the Labour Government. I was not in the House in the last Parliament, but I wonder whether any Members can remember the Liberal Democrats asking for lower Government spending then. I do not remember it, but perhaps the hon. Gentleman could enlighten me about when he opposed Labour’s spending on schools and hospitals in Bradford and elsewhere.